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Increase in Bolsa Família: Lula considers approving an addition this Thursday
Next Thursday promises to be decisive for the future of Bolsa Família. According to sources from O Globo, the government under Lula's leadership is considering an increase in the benefit to be included in the 2024 Budget. The government is considering a fixed 4% increase for Bolsa Família, a crucial social program for countless families in Brazil.
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The Budget and the Annual Budget Law (LOA)
Read also: Bolsa Família Withdrawal Without Documents Shocks Brazilians
Known as the LOA, the Budget is the result of the work of the Ministry of Planning and Budget, currently led by Minister Simone Tebet. Congress receives the LOA for review and possible amendments before voting.
The current proposal is to raise the average Bolsa Família amount to R$ 710. In 2023, only the Constitutional Amendment Proposal (PEC) sent by the government the previous year made it possible for the program to continue, ensuring fiscal space. Today, the average Bolsa Família amount is R$ 683.22.
Additional Revenue and Taxes
For the coming year, the government projects additional revenues exceeding R$ 50 billion, arising from the return of federal taxes on fuels, which are expected to contribute at least R$ 20 billion to revenue.
Other initiatives, such as taxation of exclusive funds and taxes on sports betting, are expected to increase government revenue. These measures will help offset the increase in Bolsa Família.
The Fiscal Target Challenge
The central issue is the government's ability to achieve the fiscal target of neutralizing the deficit next year. According to the recent fiscal rule enacted by Congress, next year's primary balance must balance revenues and expenditures.
Budget and Implementation of the Increase in Bolsa Família
The Benefit currently has a budget of R$ 168 billion. The proposed increase would entail an additional expenditure of R$ 5.6 billion in 2024. This amount must be included in the 2024 Budget that the government will submit to Congress next Thursday, August 31.
Base amount and family structure
The program establishes a base amount of R$ 600, which is adjusted according to the family structure. This amount was set during the Bolsonaro administration, previously named Auxílio Brasil.
Total number of families assisted
Today, approximately 20.9 million families are part of the program. The government's goal is to begin 2024 assisting 20.7 million families.
Evaluation of registered beneficiaries
Read also: Check whether you were approved for Bolsa Família 2023. Learn how to check.
The government is conducting a detailed inspection to ensure that everyone registered as single-person families actually lives alone.
Financial consequences of the increase in Bolsa Família
The adjustment would imply an additional R$ 560.98 million per month from March to December 2024.
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Date of implementation and revitalization of Bolsa Família
March 2024 is the target month for implementing the adjustment, coinciding with the government's revitalization of the program under Lula this year.
Adjustment for inflation. The 4% percentage aims to adjust, even if only partially, for current inflation. Analysts forecast inflation at 4.8%.
Eligibility definition?
For now, there are no plans to increase the maximum income of R$ 218 per individual, a criterion used to determine eligibility for the program.
